Tanzania Petroleum Development Corporation (TPDC) and Dangote Cement yesterday signed a 20-year deal that will see the cement maker produce electricity for the production of cement at Dangote’s Mtwara plant using natural gas, a Tanzanian newspaper reported.
“The plant will convert to gas over the next 2 months at a cost of 2 billion Tanzanian shillings ($876 million) and will increase power output to 40 megawatts from 22 megawatts,” Jagat Rathee, Tanzanian country manager for Dangote Cement said.
Actual generation of electricity from natural gas will start within two months from now, he noted.
The development creates hope that production at the country’s largest cement producer will not be affected by electricity challenges, resulting in a number of benefits to consumers such as reduced prices.
